Australian businesses are betting on Artificial Intelligence in the face of customer churn
Genesys, a global cloud leader in artificial intelligence (AI)-powered experience orchestration, today released research revealing that 78% of Australian businesses surveyed are concerned about diminishing customer loyalty — a problem the bulk of businesses hope to address with AI, despite lingering fears about the technology.
The study, which was commissioned by Genesys and carried out by industry research firm YouGov, found that two-thirds (66%) of those surveyed cited customer churn as their primary business concern. Two-fifths (40%) were worried about customers churning for less expensive competitors, and three in ten (29%) were concerned about churn due to poor experience or customer service.
In a bid to deal with such concerns, the vast majority (97%) of those surveyed said their organisation had or would adopt AI to enhance customer experience. Despite the cautiousness towards new technology, 95% of senior business decision-makers surveyed expressed some concern about implementing AI in their company.
Indeed, nearly half (46%) of those surveyed cited cybersecurity risks from using AI programs as a top concern. Other top concerns included legal and regulatory issues (42%), a lack of AI skills internally among employees (40%) and the cost of investing in and implementing AI from a budgetary perspective (40%).
An appetite for AI
Regardless of the fears about implementing AI, nine in ten senior business decision-makers surveyed (91%) said their company had seen or expected to see an increase in customer satisfaction as a result of implementing AI technology.
Moreover, 94% of respondents from businesses actively using or considering AI for customer experience enhancements said their organisation had improved or expected to improve on first contact resolution. Likewise, a similar proportion cited an increase in campaign ROI (94%) and a reduction of cost to serve (94%) as anticipated benefits from AI.
It should come as little surprise, then, that Australian business investment in AI is set to hit 15.1% of annual budgets, on average, in the next financial year, according to the research. This marks a rise from the average investment of 11.1% of annual budgets that research respondents said their businesses were putting into AI technology this financial year.
Further reflecting rising investment in AI, the study also found that nine in ten (90%) of those surveyed said their company expected to spend on AI in the next financial year. This is compared to nearly nine in ten (88%) respondents who said their organisation planned to spend on AI this financial year.
AI opportunities abound
The anticipated rise in AI investment showcases the perceived and realised benefits of implementing the technology among local businesses. A third (32%) of respondents cited the automation and streamlining of repetitive processes to improve business efficiencies as being among their top three drivers for implementing AI to enhance customer experience.
Other customer experience-related drivers of AI uptake included the desire to improve quality and consistency across the end-to-end customer journey, a factor noted by nearly three in ten (28%) of those surveyed. Nearly as many respondents (27%) cited the improvement of personalisation among their top three drivers for implementing AI to enhance customer experience.
Against this backdrop, it makes sense that three in ten (31%) respondents said their organisations were applying or planning to apply AI to conversational chatbots. Another 31% said their companies were using or planning to use the technology for predictive analytics and digital engagement — a frequent driver of customer service excellence.
“The business benefits of AI technology are clear, and the latest research from Genesys showcases just how AI can change the face of customer experience and engagement,” said Mark Buckley, Vice President, Australia and New Zealand, Genesys. “While some concerns remain about implementing AI technology, the opportunity is ripe for businesses to tap AI and the solutions that draw upon its power to transform customer experience for the better.”
